There were 989 households out of which 5.8% had children under the age of 18 living with them, 41.1% were married couples living together, 5.2% had a female householder with no husband present, and 51.1% were non-families. 42.8% of all households were made up of individuals and 17.7% had someone living alone who was 65 years of age or older. The average household size was 1.72 and the average family size was 2.26.

In the town, the population was spread out with 6.1% under the age of 18, 2.6% from 18 to 24, 19.2% from 25 to 44, 40.0% from 45 to 64, and 32.1% who were 65 years of age or older. The median age was 56 years. For every 100 females, there were 96.4 males. For every 100 females age 18 and over, there were 93.6 males.

The median income for a household in the town was $45,000, and the median income for a family was $61,641. Males had a median income of $45,375 versus $35,875 for females. The per capita income for the town was $40,002. About 5.4% of families and 6.9% of the population were below the poverty line, including 9.3% of those under age 18 and 9.8% of those age 65 or over.

The town has recently[when?] undergone multiple construction and renovation projects, including utility undergrounding, road re-surfacing, and the placement of pedestrian safety measures. The town staff recently moved into a new municipal center which replaces the decades-old, antiquated facility. The new building houses all Town Departments, and a Council Chambers for official meetings. The fourth floor of the building has a large banquet hall, with waterfront balcony views on both sides.

Indian Shores also maintains a municipal police department, staffed and operational 24 hours per day, 365 days a year. The ISPD occupies a new modernized operations facility in the Municipal Center. The Police Department also provides services to the neighboring town of Redington Shores. Services are provided through traditional vehicle patrol, as well as ATV patrol on the sand beach areas; and a police vessel for marine patrol. In addition to uniformed services, the department has a Criminal Investigation Division. Created in 1964, the Police Department is currently headed by Chief Terry Hughes.